Financial services executives expect to double the number of jobs they send offshore in the next three years, according to a survey by PricewaterhouseCoopers. Cutting costs was the main reason for offshoring cited by 79% of the 156 executives surveyed. “It’s not just transactional activities that will be sourced offshore in the future,” says Paul Horowitz, partner at Pricewaterhouse Coopers. “Research and financial modeling are now going offshore,” he says. Indian suppliers Tata Consultancy and Infosys Technologies secured their largest-ever contract wins during the third quarter, according to Datamonitor. Tata won a five-year, $240 million contract for outsourcing work on ABN Amro’s strategic banking platform. Infosys won a $140 million outsourcing deal with the same bank.
Dallas-based Everest Group, an outsourcing advisory firm, says finance and accounting outsourcing is increasingly going to Indian providers. “They are not just offering clerks, but college graduates, who can not only do processing, but also superior analytic work,” says Michel Janssen, president-supplier solutions at Everest.